2-year fixed at 1.59% or lifetime tracker at 1.79%?

marathonic

Which and why - both are fee-free?

I'm thinking the 2-year fix looks better because I'm of the opinion that base rates will be higher in 2 years time but, also, tracker margins will probably be reduced from the 1.29% above BOE of the above product.

I have no intention of overpaying - just want the cheapest deal.

Of course, I could be wrong and tracker margins could be at, or above, the current 1.29% above BOE in 2 years time.

I know it's all a gamble and 'crystal ball type stuff'. However, which would you select today if you were in my shoes?

samba

I'm a tracker man myself - it's gonna be 2016 before there are any interest rate rises imho, and when they do come they will be slow and steady. Also, there are no ERCs, so if you see a better deal then you are free to move to it.

The only fixed that has caught my eye recently is Barclays 10 year fixed at 2.99%, the only downside being a 6% ERC.

I've just signed up for a lifetime tracker at boe + 1.49% - I would've gone for the one you've mentioned but I'm too far down the line and don't want to go through the whole hassle of 3 hour phone calls and digging out all the documentation again. If the tracker margin reduces in the next 6-12 months I will definitely look at remortgaging tho.

Batchy

Id always do a lifetime track... you never know when your circumstances are different in the future and you get punished for the that situation, bad health / lack of employment, changing jobs etc.

At the end of the day if a better lifetime comes out more comptetitively then you can change normally with no penalty, which is great flexibility.

dimbo61

Take the Lifetime tracker as the other deal is only for 2 years then SVR or remortgage time+costs
0.2% difference and rates may not go up for another 5/6/7/ months